The $ 1 Billion Presidential Election: One Billion Dollars and 10 Days to go

Way back then, way back when, in the 1960's an American writer by the Name of Theodore H. White came up with a brilliant Idea:  write a Book each four Years entitled ,,The Making of the President."  The Idea met with great Success.  Theodore H. White, who first wrote ,,The Making of the President 1960'' about the historic Kennedy-Nixon Campaign, went on to write Sequels about subsequent Presidential Elections, none as succesful as his First One, but still, all of them succesful enough.  Today, this Tradition seems to have faded.

So, one wonders, what insightful Issue might be noteworthy enough to bring to the Forefront if one were to write a Book titled ,,The Making of the President 2012.''  Several Campaign Issues which have been played up by the two Candidates come to mind.

§  Jobs - this is an Issue that impacts every American.

§  The Economy - again, this is an Issue that also impacts every American as well.

Other Issues, be they in the Area of Foreign Policy, Women's Rights, Homosexual Rights, Minority and Immigration Issues, are all Policy Issues, which, while being important enough and likely to affect the Outcome of the Election in a profound Manner, are still issues which, directly, ipso Facto, do not directly and imminently affect every American in the same Way that Jobs and the Economy (Two Facets of one and the same Issue) do.

However, there is another Aspect which does affect each and every American and, at that, in a profound Way and that is the Deficit.  Currently at $ 16 Trillion (it was 11 Trillion when President George W. Bush left Office) it is projected to rise in the upcoming Four Years, regardless of which Candidate wins the coveted Office.

http://economywatch.nbcnews.com/_news/2012/10/15/14453514-whether-its-obama-or-romney-either-will-face-huge-obstacles-on-economy?lite

And, aside from Generalities which are difficult to pin in Terms of tangible Policies, neither Candidate has a stark, aggressive and palpably effective Plan to deal with this Morass.  Even more worrysome is the Fact that the Federal Debt is held largely in foreign Hands, China, surprisingly, Japan (No. 2), according to several Reports and then followed by other Countries.

More worrysome is the Fact that under Mr. Bernanke's Policies, the Federal Deficit has become more susceptible to short Term Effects, this, because of Mr. Bernanke's Implementation of something he calls ,,Operation Twist'' under which the Fed is retiring as much as possible of the Long Term Debt, in exchange for Short Term Debt at somewhat lower Interest Rates.

This, of course, has the Effect of reducing, in the Short Term, the Federal Deficit which would be worse if the Interest Rates paid by the Federal Government were higher rather than lower, as they would become and are becoming, under the Policy of swapping higher Interest Long Term Debt for (slightly) lower Interest Short Term Debt, sometimes as short as a Month, a Week, or even a Day.

http://bottomline.nbcnews.com/_news/2012/10/11/14370868-washington-must-avoid-fiscal-cliff-goldmans-blankfein-warns?lite

However, there is serious Danger in the Policy being pursued by Mr. Bernanke.  Any Increase in the Interest Rates (on which the Fed has mercilessly kept the Lid on), would be ruinous for the Federal Debt.  Higher Interest Rates would push Interest Expenses into the Stratosphere, worsen the Deficit and Situations like that are ocurring right now not only in Greece, but also in places like Italy and Spain.  Mr. Bernanke does not tell us what Plan he has to deal with these Dangers and, what the Heck?  He wants to retire after his current Term expires.  Let someone else deal with that Problem.

 

But for the Presidential Candidates, there is another Aspect.  The President of the United States, or an Aspirant to that High Office, the Highest Office in the Land can set an Example.  An Example of a Modecum of Fiscal Discipline.  And, Mr. Obama, who has been unable to exercise this and Mr. Romney who claims he has ,,Experience'' in Fiscal Discipline have both set an unglorious Example:  this will be the First Presidental Election which will cost more than $ 1 Billion, which, as everyone else knows, is $ 1000 Million, that is to say, the Equivalent of $ 3,00 being spent for each Man, Woman and Child in the United States; that includes everyone, voting or non voting.

A significant Part of this Expenditure is yet to happen and it is about to happen now:  in the last 10 hectic Days of the Election, on an unprecedented Advertising Blitz by both Candidates.  That means, the Candidates would not be spending the Bulk of this Money on explaining or discussing the Issues which affect the Nation but rather, spending the Money on Advertising of one Sort of another.  Someone even before Theodore H. White said that the campaign for President of the United States is akin to selling a Box of Cereal on Television.

 http://firstread.nbcnews.com/_news/2012/10/17/14511630-ad-spending-tops-800-million-on-pace-to-reach-or-come-close-to-1-billion?lite

What Confidence can this Kind of senseless Spending instill in the Electorate that the succesful Candidate Ten Days from now, is going to have what it takes and it is going to take a Lot, an awful Lot, to bring Sense and Reason to a Financial Mumbo Jumbo built Brick by Brick by President Reagan with his Supply Side Economics Theories, President Clinton with his ,,Take the Money from here, put it there and balance the Budget'' Theories,  President Bush with his we can do two Wars at the same Time and do everything else at the same Time Theories, Mr. Greenspan with his ,,Irrational Exuberence'' Theories,  Mr. Bernanke with his ,,Operation Twist'' Theories and, and...Mr. Obama who, regardless of what one's Opinion might be of him, certainly was faced, for the last Four Years with a nagging Question:  how do we get out of this Mess which took so long to create?

One Way, admittedly four Years later that both he and Mr. Romney could have done was:  don't spend this Kind of ,,Irrational Exuberance'' Money to be elected President.

The Problem with President Clinton

The Problem the Democrats have with President Clinton, but do not or do not want to recognize, at least not yet, is similar to the Problem Republicans have with President Reagan but, it may be, that Republicans do not recognize their Problem, not yet anyway, either.  Certainly, the Republicans do not want to recognize it, though.

However, President Reagan has slowly began to fade from Memory, that ,,Great Communicator'' who had to have ,,Handlers'' when it came to Presidential Debates.  President Reagan caused enormous and, one might say, irreparable Damage by stimulating the Economy with enormous Deficits which expanded the Economy, created a Lot of rich People but also started the Build Up of an unprecedented Debt Load.  After a brief Hiatus during the 4 Year Presidency of President George H. W. Bush (Bush ,,41'', who called ,,Reaganomics'' ,,Voodoo Economics'') President Clinton not only continued President Reagan's Tradition but even praised it.

So now President Clinton whose salacious Activities with Monica Lewinsky have long ago faded from Memory, he and Secretary of State Hillary Clinton now boast, he knew how to balance the Budget.  Yeah, he did.  But how he did it is the more interesting Part.  President Clinton took the Postal Service Retirement Fund ($ 7 Billion) as well as the Social Security and Medicare Trust Funds (which were enormous Sums of Money) and threw them into the General Budget thusly creating a huge but temporary Infusion of Cash and, ,,Poof!,'' it looked as if the Budget was ,,balanced,'' but, again, only temporarily.  Now, not only the U. S. Postal Service but, far more worrying, Social Security and Medicare are in dire Straits.  Everyone is scared of raising the Payroll Tax Deduction Ceiling (now at $ 110,000 for People earning $ 110 Million, or $ 11 Million or even $ 1,1 Million because it would ,,discourage'' the Creation of new Jobs?).  President Clinton's Two Terms were then followed by the two economically disastrous Terms of President George W. Bush (Bush ,,43,'' the Dubya) and during his Term and after that, we all know what happened.  The Federal Deficit now adds up to $ 16 Trillion, give or take a Couple of Pennies and nobody has come up with a Plan of any Kind as to how this Deficit might begin to be retired.  Statements by the two Presidential Candidates, President Obama and former Governor Romney are about how they plan to reduce the Size of future Deficits and eventually reach (one hopes) a Balanced Budget, if...if this and if that and if something else, but, without raising Taxes.  Go figure.

So, when Mr. Clinton claims that the Economy is not ,,hunky dory'' but on the Mend,

http://firstread.nbcnews.com/_news/2012/10/19/14567670-clinton-lauds-obama-says-economy-not-hunky-dory-but-on-the-mend?lite

it is reasonable to question his Authority at coming up with such Statements.  Actually, with the Congressional Impasse over Cuts and Taxes and with ,,Automatic Sequestrations'' being a Problem which, no matter which way it is resolved or remains unresolved, the adverse Consequences on the Economy, the Problems which will be faced by the President after he takes the Oath of Office on 20 January 2013, no Matter if it is the current President or the Republican Challenger, will be daunting, very, very daunting, indeed.  And that, while at the same Time having to deal with Mr. Bernanke's untested Theories about ,,Quantitative Easing,'' ,,Operation Twist'' and who knows what else that Mr. Bernanke might come up with.

Sometimes, we can overcomplicate Things in spite of ourselves.  The basic Truth is that just like the Republican Party is not the Party of Ronald Reagan, it is the Party of Abraham Lincoln and Theodore Roosevelt; equally, the Democratic Party, it would be good to remember, is not the Party of Bill Clinton; it is the Party of Thomas Jefferson and Franklin Delano Roosevelt.  President Clinton said, when he first ran for President, ,,It's the Economy, Stupid!'' and he was right.  One could have also said at the same Time and certainly can say it now:  ,,Keep it simple, (Stupid!)''  ,,Do not solve a Problem by creating another Problem.''

 

Google and Apple

There was some ,,terrible'' News about Google (GOOG, NASDAQ) today.  Somebody at R. R. Donnelley and Company (definitely not a ,,Star Quality'' Company, a true Has Been) seems to have made a Mistake or somebody at Google made a Mistake in reporting Google Earnings without the proper Orchestration and Google Stock immediately took a Tumble of more than 10% in Seconds.  Google, obviously a Company with Clout, was not only able to call NASDAQ and get through but also able to demand and succeed in having the Trading of the Stock suspended until it ,,corrected'' the News but not before $ 26 Billion went down the Toilet.

http://marketday.nbcnews.com/_news/2012/10/18/14540754-google-error-triggers-pending-larry-twitter-meme?lite

The Good News is that Google has the right Telephone Numbers and knows whom to call at NASDAQ.  The not so good News is that the Google Earnings took a Tumble and a certain Kind of Reality is setting in:  spectacular Earnings for Newstarts can often be achieved and even continue for a long Time but not forever.  By acquiring Motorola, Google has entered the ,,Mainstream'' and in the Mainstream Things are not as simple as for a Start Up; even for a giant Start Up which Google is.

Entertaining and amusing to some is that Google seemed to have used ,,Smart Phones'' for the Transmission of at least some of the Information to R. R. Donnelley and/or to the SEC; apparently, Google Higher Ups are busy using their Android Smart Phones and have fallen out of the Habit of just sitting down at some Desk and doing their Work the ,,Old Fashioned Way;''  proofing, reading and re reading something that is sent out because once it is sent out, it becomes just that; sent.  Such ,,Work'' is not for Big People; it is only for the little People, it seems.

But Google is not alone in this Stratosphere.  The Darling of the Stock Market right now is and has been for some Time, Apple Computer (AAPL, NASDAQ), not all that long ago a nearly bankrupt Company.  Apple rose from the Ashes under the masterful Hand of Steve Jobs, who backed his creative Innovations with equally creative Marketing and who went after its Competitors with ruthless Vengeance.  Trouble is, there are Dozens of Cell Phones and ,,Tablets'' which work really just as fine as Apple and one can sustain this Kind of Sizzle for only so long.  Steve Jobs masterfully maintained the Apple Legend for far longer than any savvy Marketing Executive would have thought possible but his untimely Death merely accelerated the Inevitable and Tim Cook...well, Tim Cook is no Steve Jobs and the First One who should know this and hopefully does, is Tim Cook himself.  Tim Cook overshot the Mark with the Introduction of the latest iPhone and overshot it badly; apparently the Orders for 5 Million iPhones were not 5 Million; and just because Tim Cook said there would be 5 Million iPhones sold did not cause Peopole to snatch those iPhones fast enough just to prove Tim Cook was right in predicting the Number of iPhones to be sold.  Apple Stock did not fare as badly as Google Stock did; it went down only 8,5%.  Other Warts, which were dismissed during Steve Jobs' Reign, keep raising their ugly Heads:  the Working Conditions at Foxconn which is the primary Producer of iPhones, the Lawsuits which Apple is pursuing against everybody in Sight (including the $ 1 Billion Judgment Apple was awarded against Samsung, now on Appeal) and more.

Still, none of the Above really points to the Crux of the Problem here.  With the American Economy in severe Trouble, with neither Mr. Obama or Mr. Romney having put out a credible Plan as to how they are going to pull the Economy out if its Tailspin, the more relevant Question should really have to do with just how many Jobs are these two Companies creating or even sustaining in the United States.

The Reader should be aware that we are talking here about two enormous Giants; one, Apple,the largest Company in the World in Terms of Capitalization.  Apple is bigger than General Motors although, it should be noted, General Motors is no longr General Motors but Apple is bigger than Exxon, too and, sometimes, that stretches the Limits of Credulity.

The Answer is that these two Companies employ very, very few People in the United States and, really, not that many Worldwide either.  Of Course, Investors on the Stock Market are not interested in creating Jobs; they are interested in making Money and that may not offer any Benefit to the Economy, regardless of what Mr. Bernanke thinks, but, as long as they are not breaking any Laws, there is no Choice but to tolerate their Practices.

However, the Question should be asked why the Focus of the News Media on these two Companies and, possibly, others of less Significance.  We are not talking about Trade Publications but rather, Mainstream.  These two Companies, which have amassed Billions and Zillions have not added any significant Jobs to the American Economy and they are not going to.  We, as a Nation, can be more mature.  We can pay less Importance to what Google and Apple do or think or even earn and pay more Attention how to create or ,,re-create'' Jobs which have evaporated, possibly, in Part, due to the Actions of these two Companies and focus on some of the real, acute and crucial Problems which this Country is facing today, economically.

Expert ,,Recommendations'' for President of the United States

In less than a Month, the Election for President of the United States will be over, setting, most likely, a Record on how much Money has been sent for electing a Public Official anywhere, ever...

Of more than inconsequential Interest appear to be some of the People whose Presidential ,,Preference'' is being reported by various Media, People whom we should take into Account, as ,,Authorities,'' or ,,Experts'' of some Sort...otherwise, why even mention what their Opinion is on the Subject?

For Mitt Romney:  Lindsay Lohan, fresh from her Nighttime Hotel Escapade in New York!

 

Lindsay Lohan

http://todayentertainment.today.com/_news/2012/10/12/14392258-lindsay-lohan-not-yet-registered-to-vote-endorses-mitt-romney?lite

For Barack Obama:  Bruce Springsteen, a major Force in 20th Century American Politics!

 

Bruce Springsteen

http://nbcpolitics.nbcnews.com/_news/2012/10/13/14418216-bruce-springsteen-to-campaign-for-obama-in-ohio?lite

Just how is the Opinion of these People relevant to the crucial Issues which confront this Country today?

One Publication described certain Endorsements as having the Potential to be toxic.  What may be equally, if not more toxic is the Attention and Importance we and the Press pay to the Opinions of these People, just as, how can one forget, Mike Huckabee running for President being endorsed by Chuck Norris?  Are these People who should shape our Political Thinking and be held up by the Press as ,,Authorities'' of any Sort whatsoever?

Important Footnote:  we are told, Lindsay Lohan will soon register to vote in order to add ,,Gravitas'' to her Endorsement.

The Vice Presidential Debate

The one and only Vice Presidential Debate took place on Thursday.  It was at a Level which far superceded the preceding Affair which took place Four Years ago between Vice President (then Senator) Joe Biden and then Governor of Alaska Sarah Palin.  The latter, one could say, was merely a Caricature of a Vice Presidential Candidate, a Choice which Senator John McCain came to regret deeply but, of course, too late for himself.

Vice President Joseph R. Biden

Both Vice President Joe Biden and Congressman Paul Ryan had one Job to do and they both knew it; enhance the Position of their respective Presidential Running Mate and inflict as much Damage on the Opposition as possible, especially in View of the unexpected outcome of the First Presidential Debate only a Week ago.

Congressman Paul D. Ryan

Each of the two Opponents put into sharp Focus the Positions of their respective Ticket although, sadly, the National Audience for the Debate was modest; not too many seemed to care, apparently, what each had to say.  At the same Time, however, this Observer believes, they both revealed, either unwittingly or because they did not know how else to avoid, the Weaknesses in their Views.

Vice President Biden argued eloquently and flawlessly for the Responsibilities of the Federal Government when it comes to Social Security and Medicare among other Things but he was not able to offer a Plan which would show how the Federal Government can sustain over the long Term, or even the short or moderate Term, these Expenditures.  Although the Vice President argued, passionately, for an end to the ,,Tax Cut'' for People making $250.000,00 or more, the Truth of the Matter is, even if that Plan were to materialize despite the fanatical and, some would say, illogical Opposition by the Republican Members of Congress, that, alone, would not come even close to beginning to deal with the horrendous Federal Deficit which threatens to cripple not only Social Security and Medicare, but much, much more.

Congressman Ryan, on the other Hand, made the Argument, with equal Eloquence, for the Management and Control of Social Security and Medicare (but not Defense) Costs.  Certainly, Management and Control of these Costs (whether in the Form proposed by Congressman Ryan, who has been advocating much of what he said long before he became a Vice Presidential Candidate) or another, are necessary.  But, assuming for a Moment, that everything that Congressman Ryan is proposing were to be implemented, that, too, would not come even close to dealing with the - just as horrendous - Federal Deficit.

So, where does that leave us?  Lost in the Equation was the Observation and Warning by IMF Director Christine Lagarde, who warned of dire Consequences if these severe financial Problems are not addressed and, soon.

Mme. Christine (Madeleine Odette) Lagarde, Director of the IMF

One interesting ,,Tidbit'' that came out during the dueling was about Embassy Security Details.  Vice President Biden pointed out, correctly, that Congressman Ryan had voted against increasing the Security Detail Budget for Embassies and Consulates abroad by $300 Million.  One might well wonder just how much Money is being spent on Embassy Security Details in the First Place, if the Increase that was being sought, alone, was $ 300 Million.  One might equally wonder why the U. S. Embassy in Baghdad has nearly 16,000 Individuals working there (Largest U. S. Embassy abroad, according to the last Fact Check).  You could ask, which is the Second largest U. S. Embassy abroad.  Here is the Answer:  Beijing, China and, although just recently opened, it is too small and the Construction of an Addition is under Way.
 

Rising Gasoline Prices and Government Policy

Gasoline Prices are on the Rise again nationally but particularly in California.  Some Reports have Gasoline selling at $ 5,00 and above in Southern California and $ 6,00 in Northern California, particularly in San Francisco.

Gasoline Companies blame the usual Culprits:  Refinery Fires or Power Outages, Pipeline Problems, Switch from Summer Blend to Winter Blend (Winter Blend for California?), you name it, they can come up with an Explanation for it.  Some of us are reminded by all this of the Good Ole' Days when Anita Bryant was pitching Orange Juice from Florida and then the News Reports were coming up with one Florida Frost after another, justifying higher and higher Orange Prices; all that is, until Brazil started exporting Oranges and put an End to that cute little Game.

But Gasoline is not Orange Juice; the World is locked in an Oil Demand/Supply Puzzle; current Supplies may be ,,adequate'' but going forward they are not and will never be; Motorists in Lagos consume Gasoline just as voraciously as Motorists in Los Angeles.  Disruptions by Wars and Boycotts, particularly in the Middle East have essentially put upward Pressure on Petroleum Prices; so has, quietly, imperceptibly, Saudi Arabia, which, when it comes to strategizing Oil Prices can outbest the best Poker Players in the World.   But all this reveals only Part of the Answer.  The Long, Medium and even the Short Trend of Oil Consumption in the Form of Gasoline is up and nearly nothing seems to be able to stop it.  Whether you go to Baltimore, Berlin, Bucharest, Buenos Aires, one Thing is evident:  People just drive.

Is there a Solution?  There is no easy Solution.  But there can be a Strategy.  A Strategy which requires Political Courage and Vision.  Underlying such a Strategy is the empirically verifiable Assumption that People will drive just as much whether Gasoline costs $ 2,00 a Gallon as it used to or $ 4,00 a Gallon, as it does now or $ 10,00 a Gallon as it costs in some other Parts of the World.  Such an Assumption is verifiable even within the United States where People in California and New York, which have some of the Country's highest Prices drive just as much or possibly even more than say, some Place like Kansas or Wyoming where Gasoline costs much less.  They may complain about it, even vociferously at Times but drive they will.  According to Economists' Definition, Demand for Gasoline is ,,inelastic'' but it is more than that.  It is also culturally driven and has been for a very, very long Time.  As an anecdotal Example, the Federal Government ,,rescued'' General Motors by pumping $ 60 Billion into a Company without a Future; into a ,,Has Been;'' for the same Amount of Money, it probably could have started building Street Cars in Los Angeles and put just as many People back to Work (,,saving or creating'' Jobs).  But it didn't.  Instead, it chose to to ,,rescue'' General Motors.  What does one expect People to do when they buy their new General Motors Car?  (either a traditional ,,Belchfire'' or the new $ 78,000 Chevy Volt - Manufacturing Cost - which can be bought for Half of what it costs to make it)

Sit on their Porch in their Rocking Chair, look at the Car and say, ,,Look, Ma, I just bought a new General Motors Car?''

Yes, there used to be Street Cars in Los Angeles and the feeble Attempt to ,,reintroduce'' Light Rail Transporatation into Los Angeles does not come close to even being a Shadow of what used to exist in a Metropolitan Area now more than tenfold larger in Size and Population

(Speaking of Los Angeles, of course, one had to do something about the ,,405 San Diego Freeway'' to accommodate all of those new General Motors Cars being sold, some for more than what it costs to make them, some for less, by unleasing a Billion Dollar Repair Project with ,,Carmageddon II and all.''  A few more Billion Dollars there, ,,creating or saving'' more Jobs...what ever happened to the Street Cars in Los Angeles?  Answer:  They went the Way of the ,,Do Do Bird'' in the 1960's when, yes, you guessed it, General Motors bought the Operation from the City of Los Angeles and then closed it down to make Way for, what else?  General Motors Cars)

 A Street Car in the northern City of Bremen, Germany

The Strategy which has been shown to work elsewhere, both East and West is to get ahead of the Curve of the Gasoline and Petroleum Companies and, yes, even ahead of the Curve of the Oil Producing States.  Instead of begging and jawboning for lower Oil Prices, along with threatening to increase Oil Production (some at horrific Environmental Costs), the Government should pre empt Price Increases by Gasoline Companies by taxing Gasoline in line with the anticipated Increases for Gasoline Prices.  That's how they do it in England, Russia, France, Argentina, yes, even in China.

People there drive just as much.  But the excess Revenue flows into the Government's Pockets.  Something akin to Alcohol or Cigarette Tax.  You say, but Cigarette and Alcohol can be harmful or fatal to Health?  So can and is Auto Exhaust Pollution and even those much touted ,,Electric'' or Hybrid Cars'' which simply transfer the Pollution from one Place to another.

But, you say, all the Government is going to do with that Revenue is waste it?  Well, you are absolutely right.  They may and they probably will, some or much of it.  That is why we all have an Obligation to make our Views known to Local, State and Federal Officials, fight for the Issues we believe in, and attract Attention to Issues which lead the Government (Federal, State or Local) down the wrong Path, be that the War in Iraq or the Bridge to Nowhere, along with a Myriad of other equally important or less imporant Issues, but...ya know what?



Think about it...Worst Case Scenario, would you rather see the Government waste the Money, or see Exxon/Mobil, Texaco, Chevron and others like them stuff their Executives' Pockets and Corporate Coffers with it?

 

The (Un)Employment Statistics

The recently released Unemployment Figures by the Labor Department show a surprising Decline of the Unemployment Rate to 7,8%.  The Résumé represented by these Figures will undoubtedly help President Obama and most Polls confirm this as President Obama is gradually (and rather decisively) pulling ahead of former Governor Romney.

One Factor yet to be put into the Equation is what will be the Effect of the First Presidential Debate during which, according to most Watchers, Mr. Romney outperformed Mr. Obama.  However, historically, Debates, no matter who they are won by, have an uphill Battle in dramatically moving the Electorate; they may enlighten and shed Light on the Candidates' Positions but People do not make up their Minds whom to vote for based on the Debates, except on rare Occasions.

Coming back to the Unemployment Statistics released by the Labor Department on Friday, 6 October, one significant Voice which could be heard expressing Skepticism was that of John F. (Jack) Welch, former Head of GE.

John F. (Jack) Welch

 

Jack Welch, unlike his Successor, Jeffrey Immelt (about whom we have written elsewhere in this Column; see ,,Dancing Elephants'')

http://www.blogger.com/blogger.g?blogID=468652052156108416#editor/target=post;postID=2580542179106125046

was a towering and shaping Leader of General Electric, truly a Leader of ,,Grand'' Proportions like his Predecessor, Reginald H. Jones and those others before both of them.  Jack Welch came out thundering and questioned the Accuracy of the Figures of the Labor Department citing, validly, among other Things that he sees no Evidence in the Economy to support those Figures.  Unfortunately, Mr. Welch went a Step too far and theorized, ,,postulated'' that a Chicago Consipracy of some Sort was behind all this, something reminscent, to his Mind, one supposes, of the good ole' Daly Days.

http://leanforward.msnbc.com/_news/2012/10/05/14248410-welch-i-have-no-evidence-for-jobs-conspiracy-theory-but-i-dont-take-it-back?lite

Reginald H. Jones, former (Legendary) Chairman of General Electric

 

One should, of course, not make such Accusations and Mr. Welch may well regret having sent the ,,Tweet'' that made the Accusation.

However, Secretary of Labor Hilda L. Solis's Protestations to Jack Welch's Criticism notwithstanding, the Department of Labor, under the Obama Administration and before has had less than a Stellar Performance when it comes to the Accuracy of such Statistics.  More frequently than one would like, or should, these Figures have been revised upwards and downwards and sideways and every which Way.  Mr. Welch is correct in stating that the chronically unemployed and the People who have simply given up looking for Work are gradually being excluded from these Unemployment Statistics and that, again, gradually, is giving the Unemplyoment Quotient a gradually different Coloration.

 

Hilda L. Solis, Secretary of Labor

Mr. Welch could have made the further Argument, which he did not that the new Jobless Claim Reprts and the Unemployment Statistics are derived from different and non correlational Data; thusly making both Sets of Figures suspect.

More simply, Mr. Welch could have made the Argument that the Department of Labor, whether it be under Hilda L. Solis or some of her recent Predecssors, can really do a far better Job at coming up with Unemplyoment Statistics which are more accurate, credible, more in Synch with the Jobless Claims and more reflective of what is really going on in the Job Market, Presidential Election or not.